There have been some articles doing the rounds on the internet which refer to the Obama credit card debt relief bill. My advice to you is to simply ignore their wild claims, because there is no such thing as the “Obama credit card debt relief bill”. Indeed, most of the claims attached to this bill are wide off the mark and are only being used as a way to hook gullible readers into singing up to a credit card debt settlement program.
Amongst the many more extravagant claims, being made on these articles, are suggestions that the credit debt settlement company can only charge you a fee if they manage to reduce your debts by more than 35%. Some even claim that the government is going to personally underwrite up to $10,000 of your credit card debts.
2. There have been some articles doing the rounds on the internet which refer to the Obama
credit card debt relief bill. My advice to you is to simply ignore their wild claims, because
there is no such thing as the “Obama credit card debt relief bill”. Indeed, most of the
claims attached to this bill are wide off the mark and are only being used as a way to hook
gullible readers into singing up to a credit card debt settlement program.
Amongst the many more extravagant claims, being made on these articles, are suggestions
that the credit debt settlement company can only charge you a fee if they manage to reduce
your debts by more than 35%. Some even claim that the government is going to personally
underwrite up to $10,000 of your credit card debts.
Is There Such a Thing as the Obama Credit Card Debt Relief Bill?
So, let’s get this straight, there is no “Obama credit card debt relief bill” nor is the
government going to underwrite anyone’s personal debts. In reality, back in September
2010, the Federal trade Committee (FTC) made some astounding changes to the credit card
debt relief law in an attempt to counter the abuses which were taken place by some credit
debt relief companies.
These rogue credit debt settlement companies where charging high upfront fees and then
under delivering on the debt relief. Because there were so many credit card debtors signing
up to the their programs, some of the credit debt relief companies simply accepted
everyone’s case, regardless of the possibility of making a reasonable debt settlement. They
did this because, regardless of the result, the debt settlement company would make a profit
simply by charging upfront charges and servicing fees.
As a result of this, in 2010 the FTC made amendments to the credit card debt law so that
the credit card debtor now has substantial financial assurances, if they decide to sign up to a
credit card debt settlement program.
So what changes have come about as a result of the new amendments to the credit card
legislation?
As a result of these changes, the credit debt relief companies cannot make upfront charges,
rather they can only charge a fee once they have significantly reduced at least one of the
debtor’s credit card bills.
Indeed, they can only receive the fee once the debtor has made at least one payment to a
credit card company which the debtor has agreed to settle with. Also, the bill and the fee
have to be proportionate to the amount of debt which has been reduced. Furthermore a
special bank account is set up, upon signing up to the credit card debt settlement program,
which is the credit card debtor has control of at all times.
The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org
3. What Happens to Me as a Result of Changes
in the Credit Card Debt Relief Legislation?
As a consequence of the changes to the credit card debt law, the debtor who signs up to a
credit debt settlement scheme can do so without any fear of been abused by the credit debt
settlement company.
Sadly, the credit debt relief industry is filled with misinformation, because of commission
hungry organizations and individuals who will feed you any kind of waffle in order to get you
signed up to their credit card debt settlement program. Such claims as the ones mentioned
earlier do not help as they only end up confusing the credit card debtor and creating
unrealistic goals which cannot be achieved. At the end of the day this results in the debtor
becoming disillusioned by the process.
In reality, credit card debt settlement is a great form of credit debt relief for a certain kind
of debtor, but not every single debtor. So what kind of debtor will benefit from a credit card
debt settlement plan?
Usually, credit card debt settlement is most suitable for debtors who are thinking of filing
for bankruptcy or who would prefer another credit debt relief option, as long as they don’t
have to file for bankruptcy. If this is not your profile, then consider other credit card debt
relief options. However, if this sounds like your situation, then go ahead because in the
majority of cases credit card debt settlement produces a better outcome than bankruptcy.
Also, if you are considering debt settlement as a possible credit debt relief option then
please do your research. It is vital for you to take responsibility for your own financial future,
which means that you have to overview the credit card debt settlement process. This means
taking a little time out to learn about credit card debt settlement, what it entails, what to
look for in a reputable debt relief company, and how best to make the most of the process.
Forget President Obama and the Obama credit card debt relief thing. When it comes to
settling your debts, you have to take responsibility. However, thanks to the recent changes in
the credit card debt law, as long as you take these strategic steps, you can make the great
credit card debt relief savings, via a credit card debt settlement program.
The Secret Behind Credit Card Debt – Copyright 2012 – http://www.CreditCardDebtSecrets.org
